Saturday, Dec 03, 2022

A Borrower’s Checklist for Selecting a Housing Loan in India

The Bajaj Housing Finance Limited Home Loan is unmatched in various aspects, including its competitive interest rates and affordability.

(Source: Bajaj Housing Finance Limited)

Like every big financial commitment, applying for a home loan too should be done with due diligence. A home loan is imperative in your journey of owning a house, and even the smallest miss may cost you the funding to make your dream come true. While the things one must remember to check are not complicated, a home loan aspirant must be meticulous when they put together all the information they need before applying. 

To make the run-up to your home loan application as smooth as it can be, we’ve prepared an easy-to-follow checklist for all home loan aspirants. Browse through this, to have a hassle-free borrowing experience. 

A Housing Loan Checklist for Aspiring Homebuyers

Possessing all the necessary information about the home loan or lender you are eyeing will help you prepare your application better. Knowing exactly what you want will also help you avoid simultaneous applications to different lenders, as that would negatively hamper your credit score.  

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Here’s everything you must look out for before you make your home loan application. 

Interest Rate 

Needless to say, the interest rate you get is the make or break factor of any home loan – it alone can decide how much your decision to get a home loan may cost you. Servicing a home loan is a long-term financial commitment, and if you don’t get the interest rates you seek, its repayment will seem like a crushing burden on your finances. This is why it’s essential to get a loan at a rate that is best aligned to your financial standing. 

Before you approach a lender, you can make use of any of the online home loan interest rate calculator tools and draw up a tentative EMI forecast which shows you how much you will be required to pay each month, based on the interest rate you select. Having a realistic idea of your EMIs will help brace you for the interest outflow to come. You can also choose between a fixed interest rate and a floating interest rate – and approach your lender accordingly. 

If you possess a strong credit profile and meet the lender’s home loan eligibility, don’t be afraid to negotiate a better home loan deal, to make sure that you attain maximum savings on your home loan. 

Documents Required for a Home Loan 


We’ve tabulated all the documents that lenders typically require, so you can make sure you have everything in place beforehand – saving you precious time when you apply for your loan. 

Category Documents
Any of the identity proofs PAN, Voter’s ID, Driving License, Passport (valid)
Any of the address proofs PAN, Voter’s ID, Driving License, Passport (valid), Electricity/Telephone/Water Bill
Others Passport-size Photographs, proof of business continuity for 5 years (for self-employed)

Income Proof

Individual Documents
Salaried and self-employed borrowers Form 16 or latest payslips or ITR

Bank statements for the previous six months

Associated Charges 


Nobody enjoys paying surprise surcharges on top of big-ticket expenses, but the truth is that home loans do have an assortment of additional costs attached. Make sure you read up on your lender’s policies before you approach them, so you have a realistic idea of how much you will need to shell out upfront, and not be taken aback when you see the payables. 

While most lenders don’t charge a penalty on prepayment of foreclosure of your loan*, you should double check if closing your loan early could cost you – as it could be chalked up to a significant amount, if they do. 

Credit Profile 

Your credit profile decides the course of your borrowing journey. If you have a strong credit score of 750 +, we anticipate a smooth borrowing experience where you will be able to meet your lender’s eligibility criteria and qualify for the loan amount you want. However, if your credit profile is not up to the mark, lenders may have their reservations about sanctioning a low interest home loan to you, as it puts your repayment capacity under scrutiny. 

Your outstanding debt, existing financial obligations, repayment history, and credit patterns influence your credit profile and give your lender an idea of how you might behave as a borrower. We recommend that you check your credit score before applying and do all that you can to maximise your chances of getting approved for the home loan of your choice. 

Pre-approved Loan Offers and Quotes 

Having a pre-approved loan offer can give you the desired leverage you’d need to negotiate a profitable deal with your developer when you buy your house. It portrays you as a dependable buyer who already has the funds arranged for the property. 


Lenders extend pre-approved offers after accessing one’s home loan application against their income and eligibility parameters. If your application is up to their satisfaction, the lender then makes a pre-approved loan offer that dramatically reduces the loan process time for the applicant. It also gives you a clear idea of what your home buying budget might be and guides you towards houses that fit the bill. Once you’ve decided which property to buy, the only things that need to be done are the detailed assessment by your chosen lender and a legal verification of the property, following which your loan amount disbursed into your account – posing no delay in your journey to buy a house. 

The Final Word

Now that you’re armed with the borrower’s checklist, use your own judgement and zero in on whom you’d like to borrow from. The Bajaj Housing Finance Limited Home Loan is unmatched in various aspects, including its competitive interest rates and affordability. You can get a loan amount of Rs.5 Crore and even more, basis your eligibility, and comfortably repay it over a tenor of 30 years, without compromising on your financial future. 

First published on: 25-11-2021 at 12:55:36 pm
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